FREQUENTLY ASKED QUESTIONS

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1 FREQUENTLY ASKED QUESTIONS

2 2 Welcome to Riverfront Townhomes. We are thrilled that you are interested in purchasing a Riverfront Townhome. This is truly a special place and provides a unique combination of resort amenities with local community-based living. Located centrally to both winter and summer activities, this is the home base you will want to explore year-round. Purchasing a resort property often comes with many questions and legal documents. This FAQ packet attempts to address the common questions buyers have and to summarize the pertinent legal documents in an easyto-understand format. We have included information on the new Riverfront development, the existing Riverfront properties and amenities, the developer, property associations and more. While this document is fairly comprehensive, it is not all-encompassing. We highly recommend that you or your legal representative read all the legal documents to ensure a complete understanding. You should also feel free to contact your local real estate agent or me with any questions. We want you to be fully comfortable with your purchase. Sincerely, Jim Telling Managing Partner Vail Valley East West Partners jtelling@ewpartners.com

3 Frequently Asked Questions the riverfront village experience Basics of the Existing Riverfront Village What exists at Riverfront Village today? A significant portion of Riverfront Village already exists. It consists of the Westin Riverfront Resort & Spa (condominium hotel residences), the Westin Riverfront Mountain Villas (timeshare residences), a high-speed gondola connecting the site to Beaver Creek Landing, a riverfront park and plaza (which includes a bike path and designated river access point), a public plaza, and food and beverage and commercial outlets. Next Phase of the Village What is planned for the next phase of the Riverfront Village? The next phase of the Village is already under construction. This includes: Phase I - Riverfront Townhomes: This parcel adjacent to the Westin Riverfront and Spa in Avon will be developed with 13 initial townhomes. Future Phases: Future phases include a whole-ownership condominium building with 36 condos and 9 additional residences. This is the current plan for Riverfront Village, but it is subject to change, and purchasers are advised to consult the Planned Unit Development documentation for Riverfront Village to determine permissible uses and densities. When is this next phase scheduled to be complete? The first phase of Riverfront Townhomes is currently scheduled to be complete in the fourth quarter of What is the timing for full build-out? The rate of build-out is dependent upon market conditions. The current estimates are for a 36-month build-out. How will views be affected by future build-out? We have worked closely with our architects to maximize the views from every residence, however, there are no guaranteed view corridors associated with the project and views may be impacted to varying degrees as future buildlings are constructed and should be evaluated by purchasers on a case-by-case basis. The Location Why is the Riverfront Village location unique? A central hub of the Vail Valley, Avon and the Riverfront Village are the gateway to one of the world s premier mountain destinations. With a ski-accessible location, Riverfront Village combines easy access to the mountain with local year-round mountain-town living. Locational highlights include: Gondola access to Beaver Creek Resort during the ski season Access to the Westin Riverfront Resort & Spa amenities 3

4 4 Short walking distance to Nottingham Park, Avon Performance Pavilion and Nottingham Lake. Known for its concerts, swim beach, children s park and stand-up paddle boarding, this is a summertime centerpiece for the Vail Valley. Walking distance to multiple restaurants and shops. Easy access to Avon, Beaver Creek, Edwards and the rest of the Vail Valley s renowned hiking and biking trail systems. A quick ride to Vail, known for its legendary ski terrain and vibrant village. Does Riverfront have ski access? Yes. Owners and guests can access Beaver Creek resort via the adjacent Riverfront Express Gondola, which terminates at the Lower Beaver Creek Mountain Express (Chair 15) that then connects to the Bachelor Gulch area of Beaver Creek Resort. What is Riverfront Park? Riverfront Park was deeded to the Town of Avon and is preserved as recreational open space. The park includes a paved and lighted bike/pedestrian path with dedicated river access points that runs parallel to the Eagle River the entire length of the Riverfront Village. Do kayakers, rafters and fishermen have access to the river? Yes. There is a primary river access point for kayakers and rafters to put-in and take-out based upon ability level. Fishermen are able to access the river at several locations. How do I get to Riverfront Park from my residence? The site design includes two paved trails down to the bike path on the east and west end of the site, as well as two soft-surface paths within the site.

5 Frequently Asked Questions the amenities Westin Riverfront Resort & Spa Amenities Are there shared amenities among Riverfront Village owners and guests? Yes. Sharing amenities and services allows for greater operational efficiency. In addition, the sharing creates a more lively and community-centric atmosphere. Through the payment of association dues, owners and guests have access to the hotel fitness facilities, pool, hot tubs, locker room, ski valet and shuttle service. Owners and guests may also use the spa but will pay for these services on an a la carte basis. What is the spa and fitness facility composed of? This 27,000-square-foot, state-of-the-art facility has a variety of cardio and weightlifting equipment, cycling room, yoga room and Pilates area and offers more than 70 group exercise classes each week. The outdoor deck features a 50-meter saline lap pool and three infinity hot tubs overlooking the Eagle River. The spa has 14 unique treatment rooms offering massage, facials and body treatments. It also features a salon, saunas and steam rooms. Are the facilities open to the general public? Yes. The fitness facilities and spa treatments are available to the public through membership programs. Do the hotel and its amenities operate 365 days/year? The hotel, fitness facilities and spa are open year-round. The ski valet service and gondola operation coincide with the winter season only. Which amenities are pay-for-service? Owners and guests may purchase spa treatments and services on an individual basis. Owners receive discounts for on-site amenities such as food and beverage, spa, hotel reservations and more. Do hotel unit owners/guests receive any preference over the townhome owners/guests for the spa, fitness facilities and other hotel facilities? No. Everyone has equal access. Riverfront Townhomes owners and guests have the right to use hotel amenities. Will they participate in the operating and capital costs of these amenities? Yes, through the Master Association dues. Can owners use the Westin shuttle buses? Yes, the Westin Hotel operates a complimentary shuttle to Vail and Beaver Creek. Riverfront Express Gondola Who owns and operates the gondola? The Confluence Metropolitan District owns the gondola and related infrastructure. Vail Resorts, operator of the Beaver Creek Resort, is hired to operate the gondola. 5

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7 Frequently Asked Questions When does the gondola run? The gondola operates in the winter season, typically from mid-december to early April. Operations are always subject to snow and weather conditions. Who can use the gondola? The gondola is open to owners, guests and the general public. You do not need a lift ticket or pass to ride the gondola, but you will need one to access the Lower Beaver Creek Mountain Express (Chair 15). There are ticket sales outlets at the base of Chair 15. Ski Valet What is ski valet? This facility allows owners and guests to store their skis, poles, ski boots and snowboards in a convenient location, adjacent to the gondola. This allows owners to skip the hassle of lugging cumbersome equipment. Boots are heated while stored. Additionally, ski-tuning services are available on a fee-for-service basis. Who can use ski valet? All Riverfront Townhomes owners and their guests may use the ski valet while in residence. Is the facility also intended for long-term storage? No, it is sized only to meet the needs of residents and guests while in-residence during the winter season. When not in residence, storage of all ski equipment and boots will be your responsibility. What does my ski/ride morning look like? Walk over to the ski valet in your street shoes, give the desk your name, put on your boots, store your shoes in a cubby, grab your skis/board from the valet and hop on the gondola. It s that easy! The Mountain How does Beaver Creek Mountain compare to other ski resorts? Beaver Creek is a world-renowned resort with 18 restaurants and 32 shops. Beaver Creek is consistently ranked in the top five resorts by Ski Magazine and is well-known for its grooming and family friendly terrain. When does the ski mountain typically open and close each year? Mountain operations are always subject to snow and weather conditions, but typically Vail Resorts opens Beaver Creek Mountain by Thanksgiving and closes mid-april. Early- and late-season operations are often limited to certain areas of the mountain as snow coverage permits. How big is the mountain? Encompassing 150 trails with 1,932 skiable acres, Beaver Creek comprises three villages. How much vertical does the mountain have? 3,340 vertical feet. Where can I access ski school? Beaver Creek ski school is located in the main village east of Powder 8. Beaver Creek boasts a world-class children s ski school program and a variety of terrain geared toward families. 7

8 8 Living in Avon What summer and year-round activities are nearby? From Riverfront Townhomes, a short walk will take you to Nottingham Park, Avon Performance Pavilion and Nottingham Lake. A popular summertime spot, locals and visitors alike flock to this area for concerts, swimming, paddle boarding, tennis, beach volleyball, barbeques and more. Biking, hiking and golfing are easily accessible from Avon, as well as fishing and kayaking on the Eagle River. The adjacent Eagle Valley Regional Trail is great for walking, running and biking from your doorstep. Avon and Beaver Creek are known for their events in the Vail Valley, including yoga in the park, concerts, running races, Brew Fest, rodeo, performing arts, 4th of July celebrations and more. Children s Activities What kinds of children s activities are there? The Westin Riverfront Resort & Spa amenities and Riverfront Park combine to provide an incredible variety of children s activities ranging from playing at the pool to hikes and bikes along the river to getting a first-row seat to the après-ski guitar player in the Westin lobby. A short walk will take you to the Avon Public Library and Avon Recreation Center, complete with a lazy river and water slide. Avon-based nonprofit Walking Mountain Science Center specializes in programs and camps encouraging children s sensory awareness and comfort in the outdoors.

9 Frequently Asked Questions Restaurants & Nightlife Are there good restaurants nearby? Absolutely. Avon has a variety of offerings from fine dining to festive Mexican to Northside, Benderz Burgers, or the Columbine and Avon bakeries. Other local Avon favorites include Loaded Joes, Bob s Place & Pazzos. Of course, Beaver Creek is also a short drive away, and many excellent restaurants can be found there. What about après, live music and nightlife? Your neighbor, the Westin, offers a fantastic après scene with live music, drink specials and great views. Head in to Vail for popular clubs or to the Vilar Performing Arts Center in Beaver Creek, which offers a variety of year-round performances of concerts, dance, musicals and more. Sports Equipment & Gear Can I rent and purchase ski gear nearby? Absolutely. Beaver Creek Sports has a retail outlet shop located within the Westin offering a variety of highquality ski gear. There are multiple outlets within walking distance featuring full-service ski rentals and retail. Can I rent and purchase bikes? Yes, many of the winter sports outlets convert to bike outlets in the summer. In addition, there is a Bike Share program in many locations in Avon. 9

10 10 Transportation How do I get to and from Beaver Creek Resort? For skiing/riding, the most convenient way to access the mountain is via the Riverfront Express Gondola, which provides direct access to the Bachelor Gulch area of Beaver Creek. Alternatively, you can access Beaver Creek Village via: The free Westin shuttle Free Avon public transportation via the Avon Station transportation center Drive to Beaver Creek parking areas approximately a 5-minute drive away (parking fee applies) Is there air service to Eagle County? Flight service to and from Eagle County Regional Airport (EGE) is excellent and includes direct flights to/ from San Francisco, Los Angeles, Phoenix, Salt Lake City, Denver, Dallas, Houston, Miami, Atlanta, Washington, D.C., Newark, New York (JFK & LGA), Chicago and Toronto. The drive from the airport is only 30 minutes. Ground transportation options include rental cars, Epic Mountain Express (shuttle and private car), ECO Transit (bus), and various taxi and limo services. What other flight options are available? Denver International Airport (DEN) is a 2 hour 15 minute drive from Riverfront Townhomes and has direct flights to many U.S. and international cities. Ground transportation options include rental cars, Epic Mountain Express (shuttle or private car) and bus.

11 Riverfront Development Who is the developer? Riverfront Townhomes are being developed and sold by a joint venture between East West Partners and The Carlyle Group, CRP/EWP Avon Owner I, LLC. Who is East West Partners? East West Partners has been one of the nation s foremost mountain resort development companies for over 30 years and calls the Westin Riverfront Resort & Spa home. East West Partners has built iconic communities in numerous mountain resorts including Deer Valley, Vail, Beaver Creek, Breckenridge and North Lake Tahoe. East West Partners also develops large-scale urban projects such as the Union Station neighborhood in Denver. In addition, East West has resort development projects in Charleston, South Carolina and Hawaii. Who is The Carlyle Group? The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $212 billion of assets under management across 339 investment vehicles as of September 30, Carlyle s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments Corporate Private Equity, Real Assets, Global Credit and Investment Solutions in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, health care, industrial, real estate, technology & business services, telecommunications & media, and transportation. The Carlyle Group employs more than 1,625 people in 31 offices across six continents. 11

12 12 Riverfront Master Association As an owner within Riverfront Village, you will be a member of the Riverfront Village Master Association. This association encompasses all property owners within Riverfront Village. There are five different classes of membership: Riverfront Townhomes and other whole-ownership owners Riverfront Resort & Spa Residential Owner Members (Westin Condominium Owners) The Vacation Club (timeshare) members Commercial members Hotel unit owners There are several non-exclusive easements known as Shared Easements in the Master Association. The Westin recreational facilities that will be made available to Riverfront Townhomes owners include the hotel pool and hot tubs, fitness area, locker rooms and the ski valet/storage.

13 Frequently Asked Questions Owners will pay for the costs associated with the Master Association and the Shared Easements through assessments levied by the Master Association. Each unit shall be allocated a Voting/Assessment Percentage of votes for the purpose of matters relating to the Master Association. All members of the Master Association shall be entitled to vote on all matters affecting all of Riverfront Village. However, certain issues relating to the operation and maintenance of Riverfront Village may affect only the valid interest of one or more, but less than all, of the classes. As an example, the commercial members do not participate in the operation and maintenance of the pool. The Riverfront Village Master Association fees are based on a separate budget and are included within the assessments that will be included in the Riverfront Townhome dues. Please consult and rely upon the actual documentation of the Riverfront Village Master Association for complete discussion of these items. Townhome Association Who manages the property at Riverfront Village? East West Hospitality (EWH) will be managing the homeowner s association. With over 30 years of experience in the Vail Valley and beyond, EWH specializes in the management of homeowners associations. EWH currently manages 65 homeowners associations and 3,600 individual units, ranging from hotel to timeshare resorts to luxury vacation homes and rentals. How are the HOAs structured? As an owner you will be a member of two associations: Riverfront Townhome Association and the Riverfront Village Master Association. The Townhome HOA oversees matters related to the townhomes only, while the master association oversees matters affecting the whole of Riverfront Village. What is the Riverfront Townhome Association responsible for? The Townhome Association covers all of the maintenance of common areas, the road servicing the units and landscaping. It also pays for property insurance, engineering services, snow removal, water, sewer and exterior maintenance of the units (window washing/road maintenance). Will other owners be able to use the road? Yes, the maintenance for the road will be shared between the Riverfront Townhome Association and the future condominium building. What is the Master Association responsible for? The primary function of the Master Association is to facilitate owners use and enjoyment of the services and amenities that are within the Shared Easements. The Shared Easements include the hotel pool and hot tubs, fitness area, locker rooms and the ski valet/storage. 13

14 14 What is the voting and expense allocation for the associations? Assessments and voting rights within the Townhome HOA are allocated equally amongst the townhomes. Assessments and voting rights within the Master Association are allocated by the number of actual bedrooms in each residence, as a percentage of the aggregate number of bedrooms (both actual and for commercial and hotel units, equivalent bedrooms), then multiplied by 66.7%. How much are the HOA dues? Current estimates are approximately $20,000 per year. This means a residence would pay approximately $1,666 per month. This amount includes dues for both Townhomes and Master Associations as well as the annual allocation to reserves for long-term repair and replacement of common elements. What additional costs will I be responsible for as an owner? In addition to the individual HOA dues, each homeowner is responsible for trash, internet, TV & phone, electrical service (which is individually metered,) property taxes, and homeowner s insurance for personal property and owner improvements. In the event of a catastrophic loss, the HOA s insurance policy will cover improvements that the developer initially provided in the home. Anything in addition to that should be covered by homeowner s insurance in the event that upgrades are made to the residence after closing. What is the Riverfront Townhome HOA board composition? The board is composed of three residential members. How are capital reserves funded for the associations? The capital reserves for the associations are built up over time through the regular and ongoing collection of HOA dues. Capital reserves are kept separate from operating funds and are set aside for long-term capital maintenance projects. The annual reserve allocation is determined by an independent reserve study that is updated pursuant to the governing documents. The reserve study is a full evaluation of the townhomes and townhome systems. How is working capital funded for the associations? Working capital is the funds on hand to use in case a large, unforeseen cost occurs or the HOA s operating budget in a given year is insufficient to deal with the day-to-day operations of the buildings. All residents, both initial and future owners, will contribute three months of the HOA dues for their residence at the time of closing for working capital.

15 Frequently Asked Questions Will my HOA dues ever increase? There are costs that increase over time, such as utilities for common areas, as well as cost-of-living adjustments for staff in order to make sure we retain the best employees available. As a result, dues are expected to increase slightly over time. However, owners are provided an opportunity to review and comment on the budget annually before it is approved. It is reasonable to expect at least an adjustment equal to inflation in a given year. How do I get more acquainted with the HOAs? Prior to closing, East West Partners will offer a new-resident orientation in which we will provide you with a resident handbook, which explains much of the above and more, including a copy of the rules and regulations. Upon closing, you will begin to receive communications to keep you informed of upcoming meetings and other important events and information. Special Taxing Districts Is the property located within any special taxing districts? Yes. In addition to being within the Town of Avon, Avon school district, and Avon fire district, all Riverfront Townhomes residential properties are in the Avon Station Metropolitan District (ASMD) and the Confluence Metropolitan District (CMD). It is recommended that purchasers ask their real estate agent for a prior year tax bill in order to see the full extent of property taxes charged in Riverfront Village. What do these special districts do? The CMD is the service district in a dual district structure whereby the CMD constructed the infrastructure for the Riverfront subdivision. The CMD is responsible for operating and maintaining all district assets, which include the Riverfront Gondola, entrance, landscaping, public plaza, restrooms and the bike path. ASMD is the financing district that issued debt bonds to fund the construction of various public improvements and provides the funding and tax base for capital improvements constructed and operated by the CMD. The CMD entered into an agreement with the Vail Corporation in 2006 for the construction, operations and maintenance of the Riverfront Gondola. How much tax do these special districts add to the property? ASMD currently assesses mills and represents approximately 50% of the total mill levy assessed on Riverfront Village properties. With a total mill levy of for 2017, a $1,000,000 residence at the property will pay approximately $9,073 in annual property taxes. Approximately $4,536 of this would be paid to ASMD. $1,000,000 x 7.2% x = $9,073/year Can property taxes go up? Colorado law requires a two-year reassessment cycle for all property is the first, or reappraisal, year of the current two-year cycle. For most property, the valuation for assessment for the 2018 tax year will be the same as it was for The assessor is required to notify you of your value each year for real property. The notice describes the property you own, gives the actual value for both the prior and current year, and provides an opportunity for you to present your objection to the assessor. The assessor estimates your market value based on sales within your neighborhood or area. 15

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17 Frequently Asked Questions Notices are mailed May 1. If the valuation on your property increases, property taxes will increase proportionately and vice versa. Summary of Carrying Costs Expense 2020 Operating $16, Reserve $3, Estimated Property Tax $9, Estimated Total $29,157 Townhome Details Annual Amount What sizes are the residences? Three- and four-bedroom residences ranging from approximately 2,000 to 2,400 square feet. What does it mean that Riverfront Townhomes uses sustainable construction practices? The Townhomes will be LEED-certified. The LEED rating and certification system is the industry standard for an environmentally sustainable building. This process offers third-party verification that the Townhomes have been designed and built using strategies aimed at reducing energy and water usage, promoting better indoor air quality and improving quality of life. Can I rent my townhome? Yes, you can rent your residence if you would like, but you are not required to. You are free to select a rental management company of your choosing. East West Hospitality manages many residences in Riverfront Village as well as the Master Association, and other individual building associations. We highly recommend speaking with them regarding rental opportunities. Please contact Jeff O Brien at jobrien@eastwest.com or (970) for more information. If I rent my residence, can my renters use the common amenities? Yes, renters may access the common amenities as described in the governing documents. Furnishings & Finishes Can I buy my Townhome furnished? We have not designed furniture packages for the Townhomes, but we re happy to connect you with designers who can help complete your residence. How do finish selections work at the Townhomes? Purchasers have two standard finish packages to choose from. The project team will walk you through these two packages and any customization options available. Package selections and the ability to customize will only be available for a limited time, as the developer will ultimately need to select a package for each residence in order to complete construction. 17

18 18 Timing What s the time frame for construction and delivery? The Townhomes commenced construction in late summer of The townhomes are currently scheduled to be complete in the fourth quarter of Purchase Details How can I review the Purchase and Sales Agreement and the related documents? It is important to us that you have plenty of time to understand the Purchase and Sale Agreement (PSA) and all of the documents discussed in the agreement, including all of the association documents and title information. We have two options available to access these documents: electronically via our website: or via a physical zip drive. How much is the earnest money deposit? 5 percent of the purchase price is due upon receipt of a fully executed PSA. We can accept either a personal check or a wire transfer. Earnest money will be held by the developer and will be applied toward your purchase at closing. An additional 10% of the purchase price is due 60 days after execution of the PSA. Is the earnest money refundable? No, the earnest money is non-refundable unless seller does not perform its obligations in the PSA. Who is handling closing and title insurance for Riverfront Townhomes? Land Title Company, located in Avon. Closings will occur at the Avon Land Title Company office, or another convenient option can be arranged for you. Do you have a list of lenders who have approval to lend at Riverfront Townhomes? Yes, please speak to our project sales team for a list of preferred lenders. That said, you are welcome to use other lenders with whom you have a relationship. Who are the brokers representing Riverfront Townhomes? Slifer, Smith & Frampton is the listing brokerage for Riverfront Townhomes, but we work with all cooperating brokers. You are welcome to have your own representative. How does closing work? As the Townhomes near completion, contract holders will be notified of a closing date. At that time, all the final recorded versions of the governing documents will be provided, along with a final title commitment. Contract holders will be invited to schedule a residence orientation and walkthrough where they can identify any items that need to be completed. Every owner s situation will be different, and our closing team will do our very best to coordinate closings in an orderly manner that meets the goals of each owner.

19 Frequently Asked Questions Will there be any other team members integral to the closing process? The title company will make sure everything is executed properly and completely. They will circulate executed copies of contracts and closing documents as needed. Additionally, they will coordinate the closing process among the owner, the owner s broker and a lender (if appropriate). Additionally, the project team includes an owner s liaison who will assist with inspections, managing punch list repairs and scheduling move-ins. The owner s liaison will also be a great resource after you have moved into Riverfront Townhomes. Inspection of the Residence What is the process if I find something wrong in my residence before closing? You will be allowed to inspect your residence with the owner liaison prior to closing. If you desire, you may bring in a licensed inspector for this process in order to ensure that you feel totally comfortable with your new home. During your inspection and orientation, we will create a punch list of items that need to be addressed to complete the construction of your residence. Any items that we agree are to be fixed will be completed as soon as possible. What is the process if I find something wrong with my residence after closing? Things happen. Even the highest-quality products and appliances have issues, or we may have missed something. If you notice something is not working or does not seem up to standard, we will do what we can to get things taken care of as soon as possible. The homeowner s warranty is for one year. For any warranty-covered issues, please coordinate with the owner liaison who assisted you with closing and move-in. 19

20 For more information: RiverfrontTownhomes.com Visit us in the Westin lobby, contact your local broker or call IMPORTANT NOTICE: The information, designs, dimensions, finishes, prices, and other elements or features contained in these materials cannot be relied upon as accurate and are subject to change without notice. Any square-footage measurements indicated herein are approximate only. Square-footage calculations may be made in a variety of manners, and different methods may yield different results. Furnishings, floorplans, sketches, renderings and other depictions shown herein are for illustrative purposes only and shall not constitute an agreement or commitment on the part of Seller to include any such items in the sale or to deliver the residence in accordance with such illustrations. Interested buyers are advised to inspect the plans and specifications to determine the actual features, dimensions and square footages and to consult with Seller as to other elements important to the purchase. In addition, pursuant to the terms of the Purchase Contract, Seller has reserved certain rights to modify elements of the townhome residence and sale. Interested buyers are advised to consult the specific terms of the Purchase Contract. Riverfront Townhomes is developed by CRP/EWP Riverfront Avon Owner I, LLC. These materials shall not constitute an offer or solicitation in any state where prior registration is required. Void where prohibited by law. EQUAL HOUSING OPPORTUNITY.